Stocks edge up as Americans open their wallets

NEW YORK — Stocks were slightly higher in late-afternoon trading Friday, helped by a rise in consumer spending.

By KEN SWEET

capecodtimes.com

By KEN SWEET

Posted Mar. 28, 2014 at 3:47 PM
Updated Mar 28, 2014 at 3:48 PM

By KEN SWEET

Posted Mar. 28, 2014 at 3:47 PM
Updated Mar 28, 2014 at 3:48 PM

» Social News

NEW YORK — Stocks were slightly higher in late-afternoon trading Friday, helped by a rise in consumer spending. Microsoft helped technology companies recover from a week of losses. The market gave back most of its gains from earlier in the day, however. The biotech sector, one of last year's biggest highfliers, took another tumble. "Candy Crush Saga" maker King Digital fell for the third day straight following its initial public offering.

KEEPING SCORE: The Standard & Poor's 500 index rose six points, or 0.3 percent, to 1,855 as of 3:15 p.m. Eastern time. The Dow Jones industrial average rose 25 points, or 0.2 percent, to 16,291 and the Nasdaq composite rose less than a point to 4,152.

BACK TO EARTH: Biotechnology stocks were once again among the biggest decliners. Gilead Sciences, Biogen and Vertex Pharmaceuticals were all down 4 percent. Biotechnology and technology stocks have been among the hardest hit in the last month, as investors have shifted out of risky names to focus on larger, more mature company stocks.

START ME UP: The biggest gainer in the Dow was Microsoft, which rose 91 cents, or 2 percent, to $40.25. The company announced Thursday that it was bringing Microsoft Office to the iPad and would shift its focus away from Windows, a move that analysts liked.

"We continue to view (this) as a massive revenue and operating profit opportunity for Microsoft," analysts at Credit Suisse said in a report Thursday. Google and Intel rose about 1 percent.

SPENDING THAW: Investors were encouraged by news that Americans increased their spending last month, a hopeful sign for an economy that has been slowed by months of severe winter weather. The Commerce Department said consumer spending inched up 0.3 percent, a hair short of economists' forecasts. Incomes rose at the same pace.

"The economy is now reaching the point where it can shake off the weather-related excuses," Doug Cote, a market strategist for ING Investment Management, wrote in an email.

CBS SPLITS: CBS Outdoor, a major outdoor advertising company, rose $1.76, or 6 percent, to $29.76 on its first day of trading. CBS decided to spin off CBS Outdoor into a separate publicly traded company because executives believed billboard advertising did not fit well with CBS's primary business of broadcasting.

BEATING BACK FIRE: Electric car maker Tesla Motors rose $4.17, or 2 percent, to $211. The stock rise followed news that federal safety regulators had closed their investigation into allegations of battery fires without any penalty against Tesla. The company also said it would install more shielding around its battery packs.

CRUSHED: King Digital Entertainment sank 86 cents, or 5 percent, to $17.66. The stock is now 22 percent below its initial public offering price of $22.50 since making its market debut on Wednesday. Many investors question whether King will be able to repeat the success of "Candy Crush," which has been far more successful than any of its other games.

OTHER MARKETS: The yield on the 10-year Treasury note hovered around 2.71 percent, up from 2.69 percent Thursday. The price of crude oil edged up 52 cents, or 0.5 percent, to $101.79 a barrel. Gold was little changed at $1,292.40 an ounce.